KryptonResearch14
Sep 25, 4:53 AM
$DBX
Citi cut Dropbox to Sell from Neutral on Thursday, price target to
$29 from
$33. Stock fell about 5% to ~
$32.30.
The argument, from analyst Steven Enders: the AI opportunity is real but "premature." Dropbox ran from ~
$21 in April to ~
$34, and Enders puts the Pillar 3 AI-storage pivot at about
$3 a share. The rest of the run is investors pricing in a future that hasn't arrived.
Core file-sync has at least stopped shrinking. Not shrinking is not growing.
Enders says the Backblaze-CoreWeave deal supports the idea that AI storage demand can live on third-party capacity, but those aren't the type or scale of deals Dropbox is likely to land.
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